It’s been a heck of a day for investors of Halcon Resources Corp (NYSE:HK) as shares are been pummeled in afternoon trading. The cause of the drop seems to be several events, which don’t seem to add up to the drop we are seeing today.
First of all oil prices continue to fall, and stocks within the sector have been following suit. Halcon Resources Corp (NYSE:HK) also expects to do a 5:1 reverse split, causing some shareholders to get a bit nervous that they may in fact do a split that’s higher than 5:1 now that the share price is even lower. Shares opened the day at their high of $0.32 before dropping as low as $0.18 at approximately 11:35 a.m. ET. While there has been a slight bounce on high volume, things still are looking quite bad for investors. The stock is down 31.87% or $0.102 following the news, hitting $0.219 per share. About 21.53 million shares traded hands or 418.80% up from the average. HK has declined 74.40% since May 14, 2015 and is downtrending. It has underperformed the S&P500 by 72.14%.
From a total of 3 analysts covering Halcon Resources Corp (NASDAQ:HK) stock, 1 rate it a “Buy”, 2 a “Sell”, and 0 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $2.75 while the lowest target price is $0.35. The mean of all analyst targets is $1.53 which is 598.63% above today’s ($0.219) stock price. Halcon Resources Corp was the topic of 4 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Capital One downgraded shares on September 9 to a “Underweight” rating.
The institutional sentiment decreased to 0.83 in Q2 2015. It’s down 0.90, from 1.73 in 2015Q2. The ratio worsened, as 24 funds sold all their Halcon Resources Corp shares they owned while 48 reduced their positions. 16 funds bought stakes while 44 increased their total positions. Institutions now own 282.85 million shares which is 0.58% less than the previous share count of 284.49 million in 2015Q2.
Canada Pension Plan Investment Board holds 0.11% of its total portfolio in Halcon Resources Corp, equating to 50.63 million shares. Tsp Capital Management Group Llc owns 324,100 shares representing 0.1% of their total US portfolio. Moreover, Pacific Heights Asset Management Llc has 0.06% of their total portfolio invested in the company, equating to 1.50 million shares. The Switzerland-based Gam Holding Ag has a total of 0.05% of their portfolio invested in the stock. Oxford Asset Management, a United Kingdom-based fund reported 2.09 million shares owned.
Halcon Resources Corporation is an independent energy firm focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The company has a market cap of $184.48 million. The company’s estimated total proved oil and natural gas reserves were approximately 189.1 million barrels of oil equivalent , consisting of 155.6 MMBoe of oil, 16.3 MMBbls of natural gas liquids, and 103.7 billion cubic feet (Bcf) of natural gas as of December 31, 2014. It currently has negative earnings. Approximately 41% of the Company’s reserves were classified as proved developed, as of 2014.